July 16, 2008

3.5" DrivesOversupply and decreased sales volumes characterize the current state of the 3.5" HDD market. However, open-market pricing has remained stable month over month. The 80 GB and 120 GB capacities are only separated by $1–$2 and are selling in the $27–$29 range with 160 GBs moving at $33–$35. We are still observing pricing for 250 GB, 400 GB, and 500 GB HDDs in the low $40, $50, and $60 ranges, respectively, while the price difference between SATA and IDE HDDs of the same capacity and speed is insignificant. Lastly, there is little activity in the 750 GB and 1TB capacities.

2.5" DrivesThere has been no significant change in the 2.5" HDD market since our last Market Insights update. Sales volumes for SATA interface hard drives continue to be low across all capacities, with resale prices slipping by $1–$2. There is now a $5–$7 price disparity between SATA and IDE HDDs of the same capacity and speed. Meanwhile, the 2.5" IDE drives remain liquid in the 20 GB through 80 GB models. A $3–$4 price difference exists between the 4200 RPM and 5400 RPM HDDs of the same capacity.

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Why Converge?

Converge, a subsidiary of Arrow Electronics, has evolved from an industry-leading electronics components distributor to a full service global supply chain partner. We help create full component life-cycle and process management plans for companies withchallenging sourcing, obsolescence, inventory and supply chain needs.

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Why Converge?

Converge, a subsidiary of Arrow Electronics, has evolved from an industry-leading electronics components distributor to a full service global supply chain partner. We help create full component life-cycle and process management plans for companies withchallenging sourcing, obsolescence, inventory and supply chain needs. Converge is headquartered in Peabody, Massachusetts, and has offices in Foothill Ranch, California; Amsterdam; and Singapore, along with support centers throughout Europe, Asia and the Americas. For more information about Converge,visit our website or call 978-538-8000.